Key inflation indicator posts biggest year-over-year gain in nearly three decades
District of Columbia | June 25, 2021
A key inflation indicator that the Federal Reserve uses to set policy rose 3.4% in May, the fastest increase since the early 1990s, the Commerce Department reported Friday. Though the gain was the biggest in nearly 30 years, it met the Dow Jones estimate and markets reacted little to the news.
The core personal consumption expenditures price index increase reflects the rapid pace of economic expansion and resulting price pressures, and amplified how far the nation has come since the pandemic-induced shutdown of 2020.
Though the reading could add to inflation concerns, Fed officials continue to insist that they see the current situation as temporary and likely to abate as conditions return to normal. The core index rose 0.5% for the month, which actually was below the 0.6% estimate…
(Excerpts from CNBC)